AmeriCredit convertibles greenshoes fully exercised for $550 million total

By Laura Lutz

Des Moines, Sept. 18 - AmeriCredit Corp. announced that the over-allotment options have been fully exercised on both tranches of its offering of senior convertible notes, for total proceeds of $550 million.

The offering priced on Sept. 12 as an issue of $250 million of 0.75% notes due 2011 and $250 million of 2.125% notes due 2013.

Each tranche included a $25 million greenshoe.

The initial conversion premiums are 15% for the five-year notes and 25% for the seven-year notes. There is a contingent conversion trigger at 130% for both tranches.

The notes were offered at par.

JP Morgan, Credit Suisse and Deutsche Bank were the bookrunners of the Rule 144A deals.

The sale closed on Sept. 18.

AmeriCredit, a Fort Worth, Texas-based sub-prime consumer finance company, said it will use the proceeds of the offering to buy back $200 million of its common stock and to enter into convertible note hedge and warrant transactions. The rest of the proceeds will be used for general corporate purposes.

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